In 2005, Protiviti conducted a survey to determine whether and how internal audit (IA) functions would “rebalance” their activities to address risks overshadowed by the intense focus on financial reporting. In the first edition of the survey, the majority of respondents indicated a rebalancing initiative was underway or in the planning stages.
So, where are we now? How have IA professionals adapted to the increased responsibilities and workload demanded by the financial reporting requirements of Sarbanes-Oxley? Is there progress toward rebalancing, and what strategies are being pursued to make it happen?
In order to answer questions such as these, Protiviti conducted its second annual IA rebalancing survey in the fall of 2006. The survey consisted of a series of questions grouped into two divisions: “Rebalance Strategy” and “Internal Audit Organization and Focus.” Participants were asked to respond to a total of 23 questions, of which some requested information for each of the three years of Sarbanes-Oxley compliance efforts. A total of 311 respondents completed the survey in person or online.
Survey participants covered a wide range of experience with Sarbanes-Oxley reporting requirements. Nearly half reported their companies were in the third year of compliance. Others had concluded the first full cycle of compliance while some had not yet begun the first year. According to survey respondents, the burdens of Sarbanes-Oxley are heaviest in the first year, when some companies find that compliance can consume more than 75 percent of an IA department’s resources. It is during this first year that outside assistance is most needed.
The 2006 survey’s key findings focus on the following topics:
- Primary Benefits of Rebalancing
- Sarbanes-Oxley Compliance: Current Status
- Rebalancing Status: One Year Ago versus Today
- Strategies: Current Versus Planned
- Activities as Part of Rebalancing
Download the entire survey report:
(28 pages, 828 KB)
Internal Audit Rebalancing Poll